Special Import Measures Regulations (SOR/84-927)

24 Where an export price is determined under section 25 of the Act, section 23 of these Regulations shall be read with the substitution of

• (a) the word “Canada” for the expressions “the country in which the vendor is located” and “that country”, wherever those expressions occur therein; and

• (b) the expression “sale of the goods by the importer in Canada” for the expression “sale of the goods to the importer in Canada”, wherever that expression occurs therein.

Goods in Transit

25 For the purpose of subsection 30(1) of the Act, the normal value and export price of goods exported to Canada from one country but passing in transit through another country shall be determined as if the goods were shipped directly to Canada from the first-mentioned country if

• (a) the goods are conveyed to Canada from the first-mentioned country on a through bill of lading to a consignee in Canada;

• (b) the goods have not been entered for trade or consumption in an intermediate country or have not remained in an intermediate country for any purpose other than transhipment; and

• (c) where requested by an officer, the importer of the goods submits

  • (i) the original bill of lading for the goods, or a certified copy of it, or

  • (ii) if the original bill of lading for the goods, or a certified copy of it, is not available, any other information or documents that are available to the importer for the purpose of determining the country of export of the goods.

Sustained Movement in the Rate of Exchange

• 25.1 (1) For the purpose of section 30.2 of the Act, where a sale of goods to an importer in Canada takes place during a period in which there is a sustained movement in the rate of exchange that results in an appreciation of the value of the foreign currency in which the normal value of the goods is denominated in terms of the currency in which the exporter’s selling price of those goods is denominated, and the exporter’s selling price of those goods is adjusted from the price prevailing 60 days before the date of the sale to reflect the sustained movement in the rate of exchange, the export price of the goods shall be adjusted by multiplying that price by the result obtained by dividing the prevailing rate of exchange in respect of the foreign currency for the date of sale, by the average of the rates of exchange in respect of that foreign currency prevailing for each of the 30 days before the 60th day before the date of sale.

• (2) Where the exporter’s selling price of the goods is denominated in Canadian dollars, the prevailing rate of exchange for the purpose of subsection (1) shall be the rate of exchange referred to in section 5 of the Currency Exchange for Customs Valuation Regulations.

• (3) Where the exporter’s selling price of the goods is denominated in foreign currency, the prevailing rate of exchange for the purpose of subsection (1) shall be determined on the basis of rates of exchange referred to in section 5 of the Currency Exchange for Customs Valuation Regulations.

PART I.1Margin of Dumping Based on Percentage or Sample

• 25.2 (1) For the purpose of subsection 30.3(3) of the Act, the margin of dumping in relation to the goods of an exporter that were not included in the percentage or sample and the goods of the exporter for which a margin of dumping was not determined in accordance with subsection 30.3(2) of the Act shall be equal to the weighted average margin of dumping established as a result of the application of sections 15 to 30 of the Act in respect of goods from that exporter that are included in the percentage or sample.

• (2) Where a margin of dumping cannot be determined under subsection (1) because no goods from the exporter were included in the percentage or sample, the margin of dumping shall

  • (a) be equal to the weighted average of the margins of dumping established as a result of the application of sections 15 to 28 and 30 of the Act, excluding paragraph 25(1)(e), in respect of goods that are from the same country and are included in the percentage or sample;

  • (b) where a margin of dumping cannot be determined under paragraph (a), be equal to the weighted average of the margins of dumping established as a result of the application of sections 15 to 28 and 30 of the Act, excluding paragraph 25(1)(e), in respect of goods that are from all other countries whose goods are under consideration and are included in a percentage or sample; or

  • (c) where a margin of dumping cannot be determined under paragraph (a) or (b), be determined in a reasonable manner based on the information available to the President.

• (3) Any margin of dumping that is insignificant shall not be taken into account in a determination of the margin of dumping under subsection (2).

25.3 [Repealed, SOR/2001-54, s. 2]

PART IIAmount of Subsidy

General

26 There shall be deducted from the amount of subsidy in relation to any subsidized goods

• (a) the amount of any fee or other expense necessarily incurred by the recipient of the subsidy in obtaining the subsidy;

• (b) the amount of any tax, duty or other charge levied by a government against the recipient of the benefit of the subsidy for the purpose of offsetting the subsidy; and

• (c) the amount of any loss in the value of the subsidy that results from the deferred receipt of the subsidy where the deferral has been imposed by the government that granted the subsidy.

Grant

27 Where the subsidy in relation to any subsidized goods is in the form of a grant, the amount of subsidy shall be determined by distributing, in accordance with generally accepted accounting principles, the amount of the grant over

• (a) where the grant was, or is, to be used for operating expenses in the production, purchase, distribution, transportation, sale, export or import of subsidized goods, the estimated total quantity of subsidized goods to which the grant is attributable;

• (b) where the grant was, or is, to be used for the purchase or construction of a fixed asset, the estimated total quantity of subsidized goods for the production, purchase, distribution, transportation, sale, export or import of which the fixed asset was, or will be, used for the anticipated useful life of the fixed asset;

• (c) where the use of the grant was, or is, not for the purposes described in paragraph (a) or (b) or is unknown, the estimated total quantity of subsidized goods the production, purchase, distribution, transportation, sale, export or import of which was, or will be, carried out by the person who received the grant during the weighted average useful life, not exceeding 10 years, of fixed assets used by the industry of that person.

• 27.1 (1) Any amount that relates to the direct transfer of funds or liabilities by the practices of a government shall be treated as a grant under section 27.

• (2) Any amount otherwise owing and due to a government that is exempted or deducted and any amount owing and due to a government that is forgiven or not collected by the government shall be treated as a grant under section 27.

Loan at a Preferential Rate

28 Where the subsidy in relation to any subsidized goods is in the form of a preferential loan, the amount of subsidy shall be determined by distributing, in accordance with generally accepted accounting principles, over the quantity of goods determined in accordance with section 31, the present value of the sum of

• (a) the amount determined in accordance with section 29, and

• (b) any costs, other than interest, that would have been incurred by the recipient of the preferential loan with respect to a non-guaranteed commercial loan that the recipient could have obtained,

such present value being determined as of the date the loan funds were advanced and by reference to the discount rate referred to in section 30.

• 29 (1) The amount referred to in paragraph 28(a) is the difference between

  • (a) the amount of interest that would be payable, by the recipient of the preferential loan, on a non-guaranteed commercial loan in the same currency in which the payments for the preferential loan are expressed and on the same credit terms, other than the interest rate, as are applicable to the preferential loan, and

  • (b) the amount of interest payable on the preferential loan.

• (2) For the purposes of paragraph (1)(a), the interest rate is

  • (a) the prevailing interest rate in the territory of the government that made the preferential loan, at the date the preferential loan was made, in respect of non-guaranteed commercial loans that the recipient of the preferential loan could have obtained, in the same currency in which the payments for the preferential loan are expressed and on credit terms, other than the interest rate, that are the same or substantially the same as the credit terms of the preferential loan;

  • (b) where the interest rate described in paragraph (a) cannot be ascertained or where there is no such interest rate, the prevailing interest rate in the territory of the government that provided the preferential loan, at the date the preferential loan was provided, in respect of non-guaranteed commercial loans that the recipient of the preferential loan could have obtained, in the same currency in which the payments for the preferential loan are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms of the preferential loan; or

  • (c) where the interest rates described in paragraphs (a) and (b) cannot be ascertained or where there are no such interest rates, the prevailing interest rate in the territory of the government that provided the preferential loan, at the date the preferential loan was made, in respect of non-guaranteed commercial loans that

    • (i) producers of like goods, whose financial creditworthiness is the same or substantially the same as or, in the absence of that condition, approximates that of the recipient of the preferential loan, could have obtained,

    • (ii) where subparagraph (i) is not applicable, producers of goods of the same general category, whose financial creditworthiness is the same or substantially the same as or, in the absence of that condition, approximates that of the recipient of the preferential loan, could have obtained, or

    • (iii) where subparagraphs (i) and (ii) are not applicable, producers of goods of the group or range of goods that is next largest to the category referred to in subparagraph (ii), whose financial creditworthiness is the same or substantially the same as or, in the absence of that condition, approximates that of the recipient of the preferential loan, could have obtained,

    in the same currency in which the payments for the preferential loan are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms of the preferential loan.

30 The discount rate for the purposes of section 28 is the same as the interest rate determined in accordance with subsection 29(2).

31 The quantity of goods, for the purpose of section 28, is

• (a) where the preferential loan was, or is, to be used for operating expenses in the production, purchase, distribution, transportation, sale, export or import of subsidized goods, the estimated total quantity of subsidized goods to which the preferential loan is attributable;

• (b) where the preferential loan was, or is, to be used for the purchase or construction of a fixed asset, the estimated total quantity of subsidized goods for the production, purchase, distribution, transportation, sale, export or import of which the fixed asset was, or will be, used for the anticipated useful life of the fixed asset;

• (c) where the use of the preferential loan was not or is not for the purposes described in paragraph (a) or (b) or is unknown, the estimated total quantity of subsidized goods the production, purchase, distribution, transportation, sale, export or import of which was or will be carried out by the person who received the preferential loan during the weighted average useful life of fixed assets, not exceeding 10 years, used by the industry in which that person is engaged.

Loan Guarantees

• 31.1 (1) Where the subsidy in relation to any subsidized goods is in the form of a loan guarantee, the amount of subsidy shall be determined by distributing, in accordance with generally accepted accounting principles, over the quantity of goods determined in accordance with subsection (2), the present value of the difference between

  • (a) the amount of interest and any administrative fees the person on whose behalf the guarantee is provided would have had to pay in respect of the loan had it not been for the guarantee, and

  • (b) the amount of interest and any administrative fees the person on whose behalf the guarantee is provided will actually pay in respect of the loan secured by the guarantee,

  such present value being determined as of the date the loan funds were advanced and by reference to the discount rate determined in accordance with subsection (3).

• (2) For the purposes of subsection (1), the quantity of goods is

  • (a) where the loan secured by the guarantee was, or is, to be used for operating expenses in the production, purchase, distribution, transportation, sale, export or import of subsidized goods, the estimated total quantity of subsidized goods to which the loan is attributable;

  • (b) where the loan secured by the guarantee was, or is, to be used for the purchase or construction of a fixed asset, the estimated total quantity of subsidized goods for the production, purchase, distribution, transportation, sale, export or import of which the fixed asset was, or will be, used during the anticipated useful life of the fixed asset;

  • (c) where the use of the loan secured by the guarantee was not or is not a use set out in paragraph (a) or (b) or is unknown, the estimated total quantity of subsidized goods the production, purchase, distribution, transportation, sale, export or import of which was or will be carried out by the person who received the loan during the weighted average useful life of fixed assets, not exceeding 10 years, used by the industry in which that person is engaged.

• (3) For the purposes of subsection (1), the discount rate is

  • (a) the prevailing interest rate in the territory of the government that provided the loan guarantee, at the date the loan was made, in respect of commercial loans that the recipient of the loan could have obtained, in the same currency in which the payments for the loan are expressed and on credit terms, other than the interest rate, that are the same or substantially the same as the credit terms of the loan;

  • (b) where the interest rate described in paragraph (a) cannot be ascertained or where there is no such interest rate, the prevailing interest rate in the territory of the government that provided the loan guarantee, at the date the loan was made, in respect of commercial loans that the recipient of the loan could have obtained, in the same currency in which the payments for the loan are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms of the loan; or

  • (c) where the interest rates described in paragraphs (a) and (b) cannot be ascertained or where there are no such interest rates, the prevailing interest rate in the territory of the government that provided the loan guarantee, at the date the loan was made, in respect of commercial loans that

    • (i) producers of like goods, whose financial creditworthiness is the same or substantially the same as or, in the absence of that condition, approximates that of the recipient of the loan, could have obtained,

    • (ii) where subparagraph (i) is not applicable, producers of goods of the same general category, whose financial creditworthiness is the same or substantially the same as or, in the absence of that condition, approximates that of the recipient of the loan, could have obtained, or

    • (iii) where subparagraphs (i) and (ii) are not applicable, producers of goods of the group or range of goods that is next largest to the category referred to in subparagraph (ii), whose financial creditworthiness is the same or substantially the same as or, in the absence of that condition, approximates that of the recipient of the loan, could have obtained,

    in the same currency in which the payments for the loan are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms of the loan.